NASSCO gets Navy contract with growth potential

General Dynamics (NYSE: GD) NASSCO, San Diego, has been awarded a $100,000 Navy contract that could bring it $210 million of work. The contract covers modernization of San Diego-homeported LSD 41 and LSD 49- class amphibious assault ships.

The initial value of the modernization contract is approximately $100,000 for the preparatory work leading to the maintenance availability aboard USS Germantown (LSD 42), which is scheduled to begin in December.The total potential value of if all options are exercised is approximately $210 million for work to be performed through 2014.

Under the contract, NASSCO will perform as many as six scheduled availabilities in San Diego. The work includes routine maintenance as well as shipboard alterations intended to extend the service lives of the ships.

NASSCO was awarded a seven-year contract for maintenance and emergent repair of LSD 41 and LSD 49-class ships, as well as LPD 4-class ships, in December 2005. The yard also leads the repair and maintenance work conducted aboard all San Diego-homeported LHA and LHD-class amphibious assault ships and FFG 7-class frigates and participates in the upkeep of other ship classes.